Having bad credit can undoubtedly make it difficult to get approved for a loan. This remains true of home mortgages, car loans, business loans, and just about everything in between. In general, a bank or other lender will refuse a loan application if the applicant has a credit score under 550, though this specific number can vary depending on the lender and other specific factors. Fortunately, there are other resources out there for those who have poor credit and are looking to borrow money. These come in the form of personal loans, which are offered by a number of private lenders across the country.

What is a Personal Loan?
A personal loan is one that can essentially be used for anything the borrower desires. Unlike a car loan or a home loan, where the funds must be directly applied to a specific expense, a personal loan can be used to cover any number of expenses. This can include bills, groceries, or even just general spending money. The amount that can be borrowed through personal loans can vary depending on a number of circumstances, including the applicant’s income. However, the good news with these kinds of loans is that the applicant’s credit score is not a factor taken into consideration.

How to Apply for Personal Loans
In general, applying for a personal loan requires a relatively simple application process. This includes filling out basic information about oneself and one’s employment status. Furthermore, the lender will most likely want to know how much the applicant makes per month from his or her steady source of income. Some lenders will require applicants to actually submit paperwork proving that they make a certain amount each month.

With these bad credit loans, however, no credit check is run in order to process an application and make a decision. Instead, the decision is made based off income criteria alone. Therefore, even those with less than perfect credit who have been turned down for a loan can obtain bad credit loans, provided that they meet the minimum income requirements. In addition to these, it is typically required that the borrower be at least 18 years of age and provide a valid bank account and routing number so that the funds can be transferred.

Repayment of Personal Loans
The repayment period of a personal loan can vary from lender to lender, but must require full repayment within a month or so. These payments can be made in even weekly installments. Most of the payment will towards the principal balance, while another portion goes towards interest. The interest rates on bad credit loans do tend to be a bit higher than those of traditional loans, but they are a great way for those who would not otherwise be able to get approved for a loan to get the funds they need.

It is important for those who take out bad credit loans to understand that missing a payment can result in substantial penalties and late fees, as with any other loan repayment. Fortunately, if payments are made in a timely manner, the loan can be paid off in no time and the borrower will have boosted his or her credit score in the process as well.

Overall, living with less than perfect credit is not always financially easy. Fortunately, there are some options out there for those who need to borrow money with a poor credit score. Taking advantage of bad credit loans can be a great way to get the money that is needed to cover any number of impending personal expenses.

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Bad Credit - Your credit history is a record of all past financial commitments and your pattern of repayment, as well as an overall look at your total debt load. Credit reference agencies use this information to assess your credit worthiness and assign a credit score. Lenders then use the credit score as a factor in deciding whether or not to underwrite your loan.

Bad Credit Loan Sources

DrCredit.com is not a lender and therefore cannot tell you the interest rate and fees that pertain to your particular loan.
After getting approved by one of our affiliated lenders, you will be shown the rates and fees that will be associated with
your loan, should you accept the approval. After being shown these terms, you will then have the option to accept them. You
are under no obligation of these terms, until they have been formally accepted.

Consequences of Non-payment

Once you have formally accepted the terms and conditions of your loan approval, you have essentially agreed to repay the loan
at the interest rate and the specific time frame discussed between you and your lender. If at any time you are unable to pay
the loan according to these terms, you will possibly incur additional fees. DrCredit.com does ensure that all lenders that we
do business with are reputable and trustworthy lenders that conduct collection actions in a fair, legal, and moral manner. It is
up to you to study the policies of your particular lender and choose whether you agree with them before you formally agree to
accept the loan.

Possible Effect to Credit Score

Your credit score is a number calculated using information from your credit history. The credit history information comes from
credit reporting agencies. Credit scores represent your credit worthiness and indicate the likelihood that you will repay a debt
as agreed. Making late payments, missing payments, rolling over a payment, and having too many credit inquiries witin a small
period of time are all examples of actions that will negatively affect your credit score. Making payments on time, repaying a
loan, and not using over half of the credit limit available on credit cards are examples of actions that will positively affect
your credit score.

Collection Practices

If a payment is missed and the lender has not been contacted, then collection is the next step that the lender will likely take.
This involves being contacted by the lender via phone, email, or mail. If their attempts to contact you fail, the account is usually
handed over to a collection agency. This can have severe negative consequences. It is very important that you understand all of your
lender's guidelines regarding repaying your loan to avoid any collection activity. As mentioned previously, DrCredit.com is not a
lending institution, therefore, we hae no involvement in the collection process.

Loan Rewnewal Policies

DrCredit.com works with numerous lenders, all of which have their own renewal policy and guidelines. There are two general types of
renewals:
-Unlimited Renewals are known for having the highest risk for borrowers and are allowed to constantly be renewed.
-Automatic and Borrower Intiated Renewals which have specific time limits and are required to be repaid when the specified time limit
has been reached.
Before accepting a personal loan offer, make sure that you have a clear understanding of each renewal option given by your lender. Read through their
renewal policy and make sure that you understand it thoroughly.

DrCredit.com is not a lender. The offers that appear on DrCredit.com’s website are from companies from which DrCredit.com receives compensation. This compensation may influence the selection, appearance, and order of appearance of the offers listed on the website. However, this compensation also facilitates the provision by DrCredit.com of certain services to you at no charge. The website does not include all financial services companies or all of their available product and service offerings.

DrCredit.com cannot guarantee you will be approved, but they will match your profile with their database of lenders to give you the best offers for your situation. Not all lenders can provide the advertised loan amount. As a condition of extending credit, some, but not all lenders may run a credit check. This website does not constitute an offer or solicitation to lend. This site will submit the information you provide to a lender in our partners loan network. Providing your information on this website does not guarantee that you will be approved for a personal loan.

Each lender is required to provide you, the consumer, with all costs associated to be expressed as an annual percentage rate of interest (APR). This information will include the identity of the creditor, the amount financed, the itemization of amount financed, the finance charge, the annual percentage rate, your payment schedule, and your total number of payments. Your APR will vary depending upon which product you select from which lender.

Our lending network consists of many direct lenders with APRs ranging from 6.46% - 34%.
Minimum repayment term is one year.
Maximum repayment term is six years.

In addition, the Federal Equal Credit Opportunity Act prohibits creditors from discriminating against applicants on the basis of color, race, religion, sex, marital status, and age.

The operator of this website is not an agent, representative or broker of any lender and does not endorse or charge you for any service or product. Cash transfer times may vary between lenders and may depend on your individual financial institution. In some circumstances faxing may be required.

States Serviced: With each state having its own rules and regulations governing personal loan lenders. APR, loan amount and repayment term will vary based on your credit worthiness, state and lender.

*Representative Example: Borrow $5,000 for 12 months, repay with monthly payments of $433.79, with an annual percentage rate (APR) of 7.50%, for a total repayment cost of $5,205.45.